The Centre for Responsible Governance (CRG) has called for restraint, dialogue and structured mediation in the ongoing commercial dispute between First Bank of Nigeria and indigenous oil services company, Nestoil Limited, warning that excessive enforcement actions could undermine investor confidence and distort Nigeria’s corporate governance environment.
In a statement issued on Tuesday, the Centre noted that the dispute involves a consortium of creditor banks and should not be driven by the unilateral posture of any single institution, particularly where alternative debt resolution mechanisms remain available.
Speaking through its spokesman, Mr. George Obande, CRG expressed concern over what it described as an increasingly forceful approach to debt recovery, despite reports that some of the creditor banks are open to debt rescheduling and negotiated repayment plans.
“This is not a single-creditor dispute,” Obande said.
“There are other banks with significant exposure who have shown willingness to explore restructuring and rescheduling options. It is therefore concerning that one institution appears to be championing foreclosure and asset takeover when broader consensus has not been achieved.”
CRG emphasized that Nestoil remains a going concern with a producing oil well, arguing that its operational status makes structured repayment a more commercially sensible option than aggressive asset seizure.
“A company with a producing oil asset has the capacity to service its obligations over time if properly structured,” Obande noted.
“In such circumstances, commercial prudence dictates rescheduling and negotiated repayment, not actions that risk crippling productive assets and destroying value for creditors, employees and the wider economy.”
The Centre further cautioned against the deployment of state security agencies in what remains a commercial dispute still before the courts, warning that such actions send negative signals to both domestic and international investors.
“Corporate actors must exercise restraint and resist the temptation to take the law into their own hands or to deploy the coercive powers of the state to harass counterparties,”
the CRG spokesman said.
“Disputes of this nature should be resolved through lawful processes, not through force or intimidation.”
According to CRG, Nigeria’s handling of high-profile commercial disputes is under close international scrutiny.
“Foreign investors are watching,” Obande stressed.
“How Nigeria manages disputes involving major financial institutions and indigenous enterprises directly affects investor confidence. These matters are best left to the courts to determine, without pressure, spectacle or overreach.”
CRG announced its willingness to mediate between the parties, advocating a balanced solution that safeguards creditor interests while preserving enterprise value and economic stability.
“Governance is tested most during moments of conflict,” Obande concluded.
“Dialogue, restraint and respect for due process remain the strongest foundations for sustainable commercial resolution.”
CRG also called the attention of President Bola Ahmed Tinubu to the dispute, cautioning against any attempt by parties involved to invoke or deploy the President’s name or perceived influence in what remains a strictly commercial and judicial matter. The Centre warned that dragging the Presidency into private debt enforcement battles risks politicising the process and damaging Nigeria’s institutional credibility.
“The stakes are extremely high,” CRG said, noting that both local and foreign investors are closely watching how commercial conflicts are handled in Nigeria.
“Perceptions matter. The integrity of the Presidency must be insulated from private commercial disputes, and all parties must allow the courts to do their work without undue influence.”
The Centre for Responsible Governance (CRG) is a non-partisan civic and policy organisation dedicated to promoting transparency, accountability and adherence to the rule of law in public and corporate governance. The Centre advocates responsible conduct by institutions and powerful actors, while encouraging processes that strengthen investor confidence, protect economic value and uphold democratic and commercial best practices. Assessment of the conduct of public officials and corporate entities remains a core mandate of the Centre.
